TBI Leasing to issue bonds

TBI Leasing is the second financial service company after BCR Leasing, to have announced plans for issuing bonds to raise cash for its operations in the last 30 days. The company will issue 25bn ROL in bonds (0.65 million euros) on the capital market.

The bonds will be issued in ROL, yet the principal and interests will be indexed in line with the ROL/EUR exchange rate. The annual interest will be 6.5% in euros and paid every six months. The principal will be repaid in full on the due date, that is in three years.

The annual interest of the bonds is practically equal to the return on the share capital of the company for the first four months of 2003.

The company was established a year ago and is controlled by TBI Holding, which also controls Omniasig insurer. TBI Leasing says it has come to account for 2% of the leasing market, which was worth one billion dollars last year and is estimated to amount to $1.5bn this year. The company has managed to conclude 17 million euros’ worth in contracts since establishment.

TBI Leasing last year posted $65,000 profit last year, while its share capital reaches one million dollars. ZF